4 ms·
The only problem with ranges is anchoring, particularly with dollars and cents. If I tell you it will be $1-10M, you're going to anchor on $1M (and be pissed wh
by basseq 10y ago
The only problem with ranges is anchoring, particularly with dollars and cents. If I tell you it will be $1-10M, you're going to anchor on $1M (and be pissed when I come in at $8M).
(The reverse is true for, say, salaries. If you tell me you pay $100-$200k/yr for a job, I'm already thinking about how to spend that $200k.)
So your ranges should be within your negotiating contingency (say, 20%).
- buro9 10y agoWhen I give ranges, I explain what each end of the range looks like. $1m - we're only doing x, y and z, within these basic constraints, the scope does not slip without renegotiation. $10m - you get m-through-z, we'll build in capacity for scope changes and discovery on the way We should be lowest quartile ($1m-$3m) of that range if we can agree through a discovery phase what is in scope and basic constraints/assumptions.
- copperx 10y agoGiving the top and middle estimates would be an easy solution. Never give out the lower estimate.